This represents an 84% increase in revenue compared with RM31.5 million in the previous year’s corresponding quarter and a significant 177% increase in profit before tax compared withRM4.1 million previously.
Dato’ Mohd Azlan Hashim, Chairman of SILK Holdings said, “This
improvement in performance is very encouraging and is attributable to
the new initiatives put in over the last 12 months. Amongst
others, the Group’s Oil and Gas Division took delivery of three new
vessels over the last 15 months and these are now contributing
both revenue and profitability. Together with the increasing traffic
volume at SILK’s Highway Division, the Group’s results
has improved significantly from the situation barely 12 months
ago, before the completion of its Regularisationexercise.
“With improving contributions from both divisions, we look forward to build upon this foundation for continued growth into the coming quarters. Barring unforeseen circumstances we expect toclose the financial year on a positive note” added Dato’ Azlan.
Oil and Gas Division
The Oil and Gas Division recorded higher profit after tax of RM8.9 million during the quarter under review compared with RM1.97 million in the preceding year corresponding quarter. Thisrepresents a 354% jump in profitability.
“The Oil & Gas Division is continuing with its renewal and replacement programme for its offshore support vessels. This is to ensure that not only does its vessels remain current and meets the stringent specification demands of its customers, but is expected to positively impactthis division as it moves into the next financial year” Dato’ Azlan elaborated.
Highway Division
The Highway Division recorded a healthy increase in traffic volume with 119,357 vehicles per day for its quarter ended 30 April 2010. This represents an increase of 15% in the number of vehicles compared with 103,578 vehicles per day recorded in the previous year’s corresponding quarter. On a financial year to date basis, average traffic volume recorded is 113,398 vehicles per day for the nine months to 30 April 2010, an encouraging 16.25% increase over the 97,545vehicles per day recorded in the previous year’s corresponding period.
“The Group is also encouraged by the consistent and significant increase in traffic volume at its Highway Division. Traffic utilising the Highway will continue to grow in the near term with the continued maturity of the neighbourhood it is serving and as the connectivity with other highways continues to increase. This is expected to be seen with the coming into service of other new highways along its alignment such as Lebuhraya Kajang Seremban (LEKAS) and the South Klang Valley Expressway (SKVE). Given the current capacity and utilisation of the SILK Highway, the Highway has ample capacity to handle the additional traffic that will be generated,” concluded Dato’ Azlan.